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Fortuna'S Liquidity And Solvency Unharmed By Market Turmoil
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August 21, 2007 - Fortuna Silver Mines Inc. (TSX-V: FVI): In light of
the recent turmoil in the financial markets, Fortuna wishes to inform
market observers and investors of the following:

- Its cash position as at July 31, 2007 was approximately US$30
million.

- The cash is held on deposit with major bank institutions.

-Under Fortuna's investment management policy, safety is a priority,
where investments are not exposed to the risk of unacceptable losses in
capital value.

-Fortuna does not currently hold directly or indirectly any type of
derivative contracts.

Additional information on the Company's financial position may be found
in our financial statements for the six months ended June 30, 2007,
filed on SEDAR August 15. These are have also been posted on the
Company's website at www.fortunasilver.com.

Background

Fortuna is a growth-oriented silver and base metal producer focused on
mining opportunities in Latin America. The Company's primary assets are
the Caylloma Silver-Base Metals Mine in southern Peru and the San Jose
Silver-Gold Project in Mexico. The Company is aggressively pursuing
additional acquisition opportunities. For more information, please
visit our website at www.fortunasilver.com.

The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.

ON BEHALF OF THE BOARD,

Jorge Ganoza Durant, President
Fortuna Silver Mines Inc.

Investor Relations: Ralph Rushton
Tel: 604-484-4085
Symbol: TSX-V:FVI

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Copyright (c) 2007 FORTUNA SILVER MINES INC. (FVI) All rights
reserved. For more information visit our website at
http://www.fortunasilver.com/ or send mailto:info@fortunasilver.com
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